You may also get a picture of whether your help might be needed later on.Īre you a young Canadian with money on your mind? To set yourself up for success and steer clear of costly mistakes, listen to our award-winning Stress Test podcast. There may be time to help your parents get on a better track for retirement by encouraging them to save more or more effectively for retirement. Here’s why you should start talking with your parents about their retirement savings in your 30s. Twenty cent said they had to make sacrifices to help their parents, while 5.7 per cent said they didn’t know how much longer they could keep paying. Almost 42 per cent of participants said they had no problem with the cost of helping parents, while almost 33 per cent called it tricky but doable. There could be an “each according to their means” aspect to this help. The amount of financial help provided by adult kids varies widely – the bookends are the 1.4 per cent of participants paying $100,000 and up per year and the 14.5 per cent paying $1,000 or less. Age 60 and up seems to be the stage in life where parents start getting financial help from their kids. Eleven survey participants, or 1.1 per cent of the total, are supporting parents aged 100 and up, while almost 17 per cent support parents in their 90s and 33 per cent support parents in their 80s. The age of parents being supported highlights how life expectancy has increased over the years. Half of participants (51 per cent) were between the ages of 40 and 59, while 17.5 per cent were 30 to 39 and the rest were between 18 and 29. Almost 22 per cent of participants were in the 60 to 69 age bracket, and another 5.4 per cent were aged 70 and up. Data on the age of participants highlights the phenomenon of retirees supporting their retired, aged parents. The survey was open to everyone aged 18 and older who provides financial help to a parent or parents. Included here are medications, the cost of retirement and long-term care homes and home care. Just over 11 per cent said their parents had moved in with them.Īnother common type of help is money used toward care. There’s also a lot of help with recurring costs like rent, cellphone bills and transportation. Another 29 per cent said they make regular cash payments to parents. The most common way adult kids help their parents financially is through periodic cash infusions – 38.5 per cent of people in the survey said they do this. Coping with big repair and maintenance bills can be a handful when you’re retired. As for houses, they are a financial responsibility as well as an asset. Pension payments can be small if you work for an employer for a short period of time. Take note if you think your house is your retirement plan, or that having a pension means retirement security. Stress Test podcast: Are you giving your parents money? One in three survey participants said their parent or parents have a company pension. Almost seven in 10 survey participants said their parents currently or previously owned a home, while just 12 per cent said their parents were lifelong renters. Other reasons include cultural expectations, job loss and death of a spouse.Įven people who own or owned homes and who have pensions require help, the survey results show. Nine per cent of survey participants cited illness or disability as the reason for supporting parents, 4.8 per cent cited debt loads and 4.3 per cent cited divorce. After retirement savings, the reasons why adult kids help their parents with money reflect a variety of social, financial and medical factors.
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